RSM Tax Advisory (Hong Kong) Limited - Weekly Alert Issue No. 39 [2016]

Welcome to issue 39 [2016] of Weekly Alert covering technical development in taxation around the globe.

TAX - HONG KONG

1. Hong Kong & Korea Tax Treaty in Force

   The agreement for the avoidance of double taxation and prevention of fiscal evasion in relation to taxes on income between Hong Kong and Korea, which was first signed in July 2014, came into effect on 27 September 2016. The agreement will be applied in Hong Kong for any year of assessment beginning on or after 1 April 2017.

   Press Release http://www.ird.gov.hk/eng/ppr/archives/16093001.htm

2. Notify IRD Promptly of Change of Address

   On 6 October 2016, the Inland Revenue Department ("IRD") released a notice to remind taxpayers to report any change of address within one month of the date of change. The notification can be sent by post, fax or through eTAX account.

   Notify IRD Promptly of Change of Address http://www.ird.gov.hk/eng/pdf/e_address_change_2016.pdf

   TAX - PRC

1. Circular on Optimizing the Administration of Tax Refunds (Exemptions) for Export Goods of Foreign Trade Integrated Services Enterprises (关于进一步优化外贸综合服务企业出口货物退（免）税管理的公告)

   The State Administration of Taxable ("SAT") has issued the "Circular on Optimizing the Administration of Tax Refunds (Exemptions) for Export Goods of Foreign Trade Integrated Services Enterprises" which took effect from 1 October 2016.

   The Circular provides guidance to SAT offices on categorizing integrated services enterprises in efficient and effective manner. Depending on the foreign trade integrated services enterprises' administration category, the SAT offices will complete their export tax refunds (exemptions) procedures under the following timeframes:

   Category Processing Time I Within 5 working days II Within 10 working days III Within 15 working days IV Within 20 working days 国家税务总局公告 2016年第61号 http://www.chinatax.gov.cn/n810341/n810755/c2277292/content.html

2. Notice on Adjustments of Cosmetics Consumption Tax Policy (关于调整化妆品消费税政策的通知)

   On 30 September 2016, the Ministry of Finance and the SAT jointly issued the "Notice on Adjustments of Cosmetics Consumption Tax Policy" in order to promote reasonable consumption.

   According to the Notice, consumption tax on ordinary beauty and cosmetics products is abolished whereas 15% consumption tax is charged on "high-end cosmetics products" including high-end beauty products, beauty enhancement products, premium skin care products, and box set cosmetics. "High-end cosmetics products" are defined as cosmetics...